Annual Report 2015

Annual report 2015 WE BUILD THE FUTURE WITH IT ATEA ASA ANNUAL REPORT 2015 2 Content Key Figures 3 CEO Comments 6 We build the future with IT 8 Business Overview 16 Atea's products and services 16 Local presence and worldwide delivery capabilities 22 Segments 24 Members of the Board 29 NOK in billion NOK in million Board of Directors' Report 2015 31 27.9 951 Shareholder Information 39 revenue EBITDA* Financial statements and Notes Atea Group Financial Statements 43 Atea Group Financial Notes 48 Atea ASA Financial Statements 87 Atea ASA Financial Notes 91 Auditors' Report 102 Corporate Governance 103 17 % 6,779 share of the market full-time employees ATEA ASA ANNUAL REPORT 2015 3 Key Figures Group 2011 – 2015 NOK in million 2011 2012 2013 2014 2015 Revenue 20,228 20,930 22,096 24,588 27,904 Contribution 4,855 5,062 5,320 5,717 6,403 Contribution margin (%) 24.0 24.2 24.1 23.3 22.9 EBITDA* 871 824 800 958 951 EBITDA-margin (%)* 4.3 3.9 3.6 3.9 3.4 EBITDA 858 811 701 929 924 KeyKey figures, figures,Key EBITnøkkeltall figures,nøkkeltall nøkkeltall 651 560 355 584 514 Earnings per share (NOK) 5.96 5.08 3.33 4.14 3.76 20152015 2015Diluted earnings per share (NOK) 5.90 5.04 3.31 4.10 3.71 Dividend per share (NOK) 2.00 5.00 9.50 6.00 6.50 Net financial position 283 49 -419 -829 -750 Cash flow from operations 1,023 783 874 959 1,287 Liquidity reserve 2,061 1,834 1,326 1,628 1,573 Equity ratio (%) 37.9 38.9 31.6 28.1 25.3 Number of full-time employees at the end of year 5,781 6,185 6,280 6,504 6,779 Revenue Revenue per country EBITDA* 2011 – 2015 (NOK in million) 2015 2011 – 2015 (NOK in million) 30,000 30,000 30,000 1,000 1,000 1,000 25,000 25,000 25,000 750 750 750 20,000 20,000 20,000 2011: 20,228 Norway: 26.0 % 2011: 871 15,000 15,000 15,000 500 500 500 2012: 20,930 Sweden: 36.9 % 2012: 824 10,000 10,000 10,000 2013: 22,096 Denmark: 27.5 % 2013: 800 250 250 250 5,000 5,000 5,000 2014: 24,588 Finland: 6.6 % 2014: 958 0 0 0 2015: 27,904 The Baltics: 3.4 % 0 0 0 2015: 951 11 12 11 13 12 14 13 15 14 1115 12 13 14 15 11 12 11 13 12 14 13 15 14 1115 12 13 14 15 * Before share-based compensation, expenses related to acquisitions, and restructuring costs. Revenue, Revenue,Konsern Konsern Revenue, Konsern Revenue perRevenue country per country Revenue per country EBITDA, KonsernEBITDA, Konsern EBITDA, Konsern ATEA ASA ANNUAL REPORT 2015 4 WE ARE ATEA Approximately 6,800 full-time employees located in 89 cities ATEA ASA ANNUAL REPORT 2015 5 Atea is the market leader in IT infrastructure and system integration for businesses and public sector organizations in the Nordic and Baltic regions. Strength in our markets Equally important, we are among the Top 3 channel Built for growth and sustainability With nearly 6,800 employees located in 89 offices partners in Europe for many of the world’s best As a publicly traded company listed on the Oslo in seven European countries — Norway, Sweden, technology companies, including: Microsoft, Stock Exchange, Atea takes pride in its long-term Finland, Denmark, Lithuania, Latvia and Estonia Apple, Cisco, HP Inc, Hewlett Packard Enterprise, record of delivering above-market revenue growth — Atea has a powerful local presence across all of IBM, Lenovo, VMware, Citrix and EMC. and in providing a healthy, consistent dividend our markets, unmatched by competitors. payout to investors. For 2015, Atea reported Based on Atea’s unique mix of competence and revenue of NOK 27.9 billion: up 13.5 percent Commanding a 17 percent share of the markets we technology partnerships, our customers count on compared to last year, and the highest in our serve — far exceeding that of other providers — we us for professional insight on how to do more company’s history. are the largest and the most adept at what we do. with IT. To that end, Atea is at the forefront of the latest technologies, in areas such as mobility, Corporate responsibility and good stewardship Making a difference with technology collaboration, security and cloud computing. of our planet are also at the core of what we do. Given our size and reach, Atea can provide the Atea fully supports the United Nations’ Global broadest range of IT infrastructure support and As a result, we can enhance productivity and solve Compact and its ten principles of human rights, advice to our customers. This means that we are even the most complex business challenges in labor, environment and anti-corruption. This not only able to provide great products, but that both the public and private sectors. means that we govern ourselves in a way that we also have the internal competence to design, helps build an inclusive, sustainable economy, implement, support and operate highly complex capable of delivering lasting benefits to people and integrated IT solutions. and the markets where they live. ATEA ASA ANNUAL REPORT 2015 6 Letter from the CEO Dear shareholders, At Atea, our mission is to “Build the future with IT”. We believe that information technology, combined with knowledge and creativity, can improve productivity and living standards across society. It is with this purpose that we set out to become the market leader in IT infrastructure across the Nordic and Baltic regions. We are very proud of the positive role that our company plays as an IT provider and trusted adviser to our customers, both in the Steinar Sønsteby (born 1962) government and in the private sector. For this reason, we have CEO chosen to make our corporate mission the theme of this annual report. More information on our corporate mission can be found in the pages which follow. We also believe that our business approach and leading market Steinar Sønsteby joined Atea in 1997 and was managing director position in the Nordic and Baltic regions creates excellent oppor- of Atea in Norway in 2006-2012. Since October 2012 Steinar tunities for Atea to deliver a strong long-term investment return has been Executive Senior Vice President in Atea ASA and was to our shareholders. We have set clear financial objectives for our appointed to CEO of Atea ASA in February 2014. Before joining company to achieve this: Atea he was the CEO of Skrivervik Data AS. Steinar Sønsteby holds a degree in Mechanical Design from Oslo First, we aim to increase our revenue organically faster than the College of Engineering and a Bachelor of Science in Mechanical market and to further strengthen our market share through selective Engineering from University of Utah (USA). He also has a finance acquisitions. In addition, we aim to consistently improve our operating degree from Norwegian School of Management (BI) and for Training margin over time. Finally, we seek to generate strong cash flow in Management and Human relations from Dale Carnegie Institute. through profit growth and improved cash conversion, enabling a high dividend payout to investors. ATEA ASA ANNUAL REPORT 2015 7 I took over as CEO in 2014, and in that year we succeeded in The financial objective which we did not meet was improving our pan-Nordic shared services and competence, we can be both achieving each of these financial objectives, within revenue growth, operating margins, which fell as a result of challenges in Norway near to our customers and at the same time access competence market share, operating margin, cash flow and dividend payout. and Denmark. We have reduced staff in both businesses during and shared resources across the Atea system. All of this enables 2015, and will focus on improving gross margin and operating us to add value to customers which is unmatched in the Nordic We started 2015 with strong momentum, but met unforeseen efficiency throughout the group in 2016. and Baltic regions. challenges in our Norwegian and Danish businesses. This required us to make management changes in Norway, and to reduce staff in We enter 2016 with confidence that our market position is stronger In sum, we believe that our market will continue to grow as both our Danish and Norwegian businesses. By Q4, both businesses than ever before. IT investments have never been more critical for customers increase their spending on IT products and services. showed clear signs of improvement, with renewed revenue growth our customers, as they handle ever more sensitive information, We see that the market will increasingly favor vendors which add and a lower cost base heading into 2016. transactions and communication through IT networks, and expand value to customers outside of a pure reseller transaction. We are their networks to ever more devices. This creates huge opportunities confident that Atea has built a unique position as the leading IT Otherwise, our Swedish and Baltics businesses had outstanding and challenges for our customers: the opportunity to transform infrastructure provider in the Nordic and Baltic markets, a position results in 2015, acquiring new customers and increasing our share productivity within their organizations and the challenge of building which is only becoming stronger with time. of wallet in the existing customer base. In Finland, our business had and maintaining networks in a secure and sustainable way. a more difficult year, but won two major new frame agreements We continue to invest in the ability of our organization to deliver toward the public sector which will secure a higher activity level With so much at stake, our customer’s IT departments are over- complete solutions to our customers and to improve efficiency.

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